After bankruptcy you will have a blemished credit report. With such a report if you approach bigger companies for credit card then you will have to hear only ‘no’. But without credit cards life seems to be really difficult. And you may also face problems rebuilding and improving your credit report. Getting credit card after bankruptcy is really difficult! But wait, you can still get credit cards!

Within few days of your discharge, your mailbox will be flooded with mails from various companies that are willing to give the best credit card after bankruptcy applications. At first glance you are impressed. But wait-something don’t seem right. Most of these are worthless, fake and junk. You need to do a lot of research and you need some tips about choosing your credit card after bankruptcy. Here is some tips on how to get a credit card after bankruptcy:

1. When the offers comes from these card companies most of them are attractive because they are free. But with time you will realize the fact that you are paying fees (perhaps more than your child’s school fees) for things you don’t know. You have to pay pay for monthly fees, annual fees, membership fees, applications fees, and only financial experts know what else fees. So you need to carefully choose the company after reading all the terms and conditions carefully. Otherwise your life that has many problems will have much more of them with the high interest rates and all these fees crushing you sooner or later.

2. One of the main reasons you should take a credit card is to improve your credit report. If you make a habit of paying your credits back in time then over time you will gain a improved credit report. But for this to happen, your card company must report to the major credit reporting agencies: Experian, Equifax, and Trans Union. So make sure of this, otherwise you will be can’t improve your report.

3. Wait for a few months say 2-3 months. Do save some money for yourself. In the time keep on researching which company is offering what- compare every terms and conditions of each company understand the hidden facts perfectly. Then after few months you can surely find a company that will have moderate interest rate will fees within range. Also these companies ask for secured credit cards that is to say you must have a savings account in the issuing bank which remains as security with them. So in this few months also save some bucks to open the savings account.

4. Another important criterion you must check is whether the company reports credit limit as this will help you improving your credit report. If they don’t report credit limit then it can hamper your credit score. So surely do check it.

So you must be careful of the credit card company’s rules and regulations. Follow these tips to choose your credit card company. Don’t rush just instead take your own time and try to choose a better company for a better result. On another note, always seek credit card companies that offer unsecured credit cards after bankruptcy, most credit card companies don’t explain this.

After a bankruptcy you may think that those happy ‘credit card’ days are over. But wait, some companies just won’t let you to get rid of credit cards…and what they do? They give you ‘credit cards for bankruptcy’. You would get many offers from different card companies just in few days after you have been discharge and each of them has unique and special offers for you, where most of them are free of cost. Or are they? Be careful. Let’s elaborate.

When you get an offer from a card company they would tell you that your bankruptcy credit cards is absolutely free, and if you believe them you are trapped in a big hole. They would charge you fees that you have never heard of like monthly fees, annual fees, membership fees, applications fees etc fee. The main fact is most of these offers are junk. You must not go for it just like that. You should ignore these offers. Wait for a while and you will get much better offers or do your research and find which credit cards are the best credit card after bankruptcy.

Most of the bankruptcy credit cards advertise as secured credit cards. Now why are they call secured credit cards ? Because they are secured by a savings account that you have to open in that bank and that account will be security for the card they give you. That’s why it’s secured. In this secured bankruptcy credit card world, the card company just uses your money when it is with them and also takes interest from you. But what’s your gain? Nothing! You just pay high interest rates.

Now you must not hurry to take a credit card. You must study all the facts and compare each of them before you can decide which the best plan is for you. It can take time but be patient because if you choose the wrong plan it can cause more trouble for you. You should read all they are providing and also what they are not providing.

If you want to improve your credit report by paying the credits regularly, also do make sure that the bankruptcy credit card is issuing bank reports to the major credit reporting agencies: Experian, Equifax, and Trans Union.. Also check whether they report credit limit. This is very important for you if you are trying to develop a good credit report.

Now let’s see whether you really need a credit card or not. If you realize the main cause why many people go bankrupt, then you may realize that the “extravagant” use of the credit card may be a cause. But life is very difficult without a credit card…paying bills, internet shopping, and many other things. So, use your card only when it’s necessary. Why pay extra interest to the card company? And pay off you bills at the end of each month. This way you can also develop good credit report.

Although bankruptcy credit cards have many demerits but they can be useful if used less but you don’t want to get overwhelm and have to start filing for credit card debt bankruptcy in the near future.